EBA Opinion on Implementation of Deposit Guarantee Schemes Directive

ByRegulatory News

August 08, 2019

EBA published an opinion on implementation of the Deposit Guarantee Schemes Directive (DGSD) in EU. In its opinion, EBA proposes a number of changes aimed at strengthening depositor protection, enhancing financial stability, and improving operational effectiveness. Two additional opinions—one on DGS payouts and another on DGS funding and uses of DGS funds—are expected to be issued later in 2019. EBA opinion responds to a mandate under the DGSD and covers the eligibility of deposits, coverage level, and cooperation between deposit guarantee schemes.

The opinion proposes changes in relation to the current provisions on transfers of DGS contributions between DGSs, cooperation of DGSs with various stakeholders, current list of exclusions from eligibility, current provisions on eligibility, depositor information, approach to the DGS membership of third-country branches, implications of the recent review of the three ESAs, and cross-references to other EU regulations and EU directives. The opinion proposes no changes, for example, to the current coverage level of EUR 100,000, provisions on home-host cooperation, cooperation agreements, or cooperation between EBA and ESRB.

Article 19(6) of DGSD requires EBA to support EC in its development of a report on the progress toward implementation of DGSD. This opinion is the first part of the fulfillment of this mandate by EBA. EBA invites EC to consider the proposals outlined in the opinion when preparing the report to be submitted to the European Parliament and the Council.